Light olefins
Overview
The global light olefins market is made up of ethylene and propylene monomers. These product markets can be affected by a great many factors.
Ethylene is the most widely used commodity chemical and is produced globally in all major regions. It is converted into many products used in daily life like plastic packaging, durable goods, hygiene products and other consumer items. The ethylene market is driven primarily by regions of low production cost and regions of high demand growth. Polyethylene, ethylene’s largest derivative, represents about 65pc of global ethylene demand. Anyone involved in the ethylene industry – directly or indirectly – needs market and pricing insight to anticipate supply shortages and potential swings in pricing.
Propylene is the second most widely used commodity chemical and is produced globally in all major regions. Propylene is a volatile commodity because of its predominantly co-product nature and unpredictable supply, but recently the industry has been trending to more on-purpose production. It is converted into many products used in daily life like plastic packaging, durable goods, automotive products, and woven fabrics. Polypropylene, propylene ’s largest derivative, represents about 70pc of global propylene demand. Anyone involved in the propylene industry – directly or indirectly – needs market and pricing insight to anticipate supply shortages and potential swings in pricing.
Our light olefins experts will help you determine what trends to track and how to stay competitive in today’s ever-changing global market.
Latest light olefins news
Browse the latest market moving news on the global light olefins industry.
UAE's Borouge starts up Al Ruwais polymers project
UAE's Borouge starts up Al Ruwais polymers project
Singapore, 30 April (Argus) — UAE-based Borouge has started polymer production at its 1.4mn t/yr Borouge 4 megaproject in Abu Dhabi's Al Ruwais Industrial city from early April. The XLPE 2 unit, which produces cross-linked polyethylene, was the first to start production, the company said today in a filing to the Abu Dhabi Securities Exchange. Output at Borouge 4 will be ramped up through 2026 as the remaining units are commissioned. Once fully online, Borouge 4 is expected to lift the company's total polymers capacity by 28pc to 6.4mn t/yr, making the Al Ruwais complex one of the world's largest single-site polyolefins facilities. Output from the project will primarily target India and China — Asia's largest petrochemical markets. The start-up comes as Borouge works to normalise operations after halting production at some units following damage caused by falling debris from drone attacks. The initial repairs have been completed on affected lines and, following a phased restart, most units are now online, with utilisation increasing. The company's sales volumes over January-March fell by 13pc year on year, partly due to the closure of the strait of Hormuz, Borouge said. It was able to export 61pc of its March production volumes via alternative routes, it added. By Sourasis Bose Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Orbia sees Iran war uplift after 1Q loss
Orbia sees Iran war uplift after 1Q loss
Houston, 29 April (Argus) — Mexico-based chemicals producer Orbia expects prolonged fighting in the Middle East and the subsequent shock to the global supply chain will boost second quarter sales revenues after the company was stung by high feedstock costs in the first quarter. Orbia expects the PVC market will become more favorable, as oil and naphtha supply disruptions in Asia sustain elevated prices well into the second quarter and possibly into the third quarter if the prolonged fighting in the Mideast Gulf continues. The longer the conflict takes, "the longer [Orbia] will have the benefit because we have a structural advantage with our cost base largely being on the US Gulf coast and based on ethane" that is more insulated from price shocks in other countries, Orbia chief executive Sameer Bharadwaj said today. Orbia's Polymer Solutions (PS) business segment sustained an operating loss of $24mn in the first quarter, expanding upon a $6mn loss in the first quarter of 2025. The Polymer Solutions business focuses on general purpose and specialty polyvinyl chloride (PVC) resin sales. Total sales for the PS business were $602mn, marginally higher than $600mn a year prior. The quarterly loss in the polymers business was driven by higher raw material costs in the quarter alongside operational disruptions, Orbia said. Orbia's other business segments recorded growth in the first quarter. The increases were led by an eight-fold year-over-year increase in infrastructure operating income, which rose to $25mn and was boosted by higher Latin American sales volumes and favorable pricing. Orbia reported a net loss of $12mn in the first quarter of 2026, rising above $29mn in the fourth quarter of 2025. Total revenues were $1.96bn in the first quarter, up 8pc from the prior year. By Gordon Pollock Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
WM expands US recycling capacity in 1Q
WM expands US recycling capacity in 1Q
Houston, 29 April (Argus) — Waste Management (WM) increased its US recycling processing capacity by 300,000 metric tonnes (t) in the first quarter, following the opening of new plants in Detroit and the Canadian province of Ontario and upgrading automation at its south Florida site, now its largest single-stream facility. The additional capacity allows WM to target growth in domestic recycling demand, with 80pc of recycled material remaining in the US and Canada, the company said. Recycling prices averaged $65/t in the first quarter, down from $88/t a year earlier, but volumes rose by 9pc and operational efficiency increased. WM said it remains on track to complete the sustainability capital expenditure program announced in 2023, which includes construction and upgrades of 43 recycling facilities and forms part of a four-year, $2.2bn investment program aimed at expanding capacity and improving material recovery rates. Automation and artificial intelligence (AI) -enabled quality controls have helped offset lower prices by improving material quality and reducing processing costs. Geopolitical disruptions have not affected recycling operations, but WM is monitoring freight disruptions, which have not yet affected demand for its products. One of the AI automations highlighted by the company was the use of "smart trucks", which capture 300mn images a year during collections. This data is used to assess contamination, recyclability and pricing, and improved material routing. By Dona Davis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US housing starts jump in March
US housing starts jump in March
Houston, 29 April (Argus) — US housing starts rebounded to 15-month highs in March, led by construction of multi-family units, US Census Bureau data published today show. US housing starts rose to a seasonally-adjusted annual rate of 1.502mn units in March, up by 10.8pc from a year prior and the highest level since December 2024. March starts also rose by 10.8 from February. Gains continue to be led by multi-family starts, which have underpinned growth since January . Project starts for five or more units climbed by nearly 14pc year-to-year to a seasonally-adjusted annual rate of 446,000 units. Single-family starts rose by 8.9pc during the same period to 1.032mn units. Permits continue to be issued at slower rates on bearish US housing market conditions underpinned by diminished affordability and elevated interest rates, weak hiring and broad-based economic uncertainty. March permits fell by 7.4pc from the prior year and slid by 10.8pc from the prior month, falling to an annual rate of 1.372mn permits. Permits slipped by 24pc from February for multifamily projects of five or more units, while permits for single-family homes dropped by 3.8pc in the same period. US homebuilders are pessimistic about the state of the housing sector this year, with consumer confidence at an all-time low with concerns stemming from the war in the Middle East and short-term inflation widening, data from the University of Michigan's consumer sentiment survey show. Mortgage rates have also risen steadily since the outbreak of the war on 28 February, climbing above 6.5pc in March, data from the Mortgage Bankers' Association (MBA) show. By Gordon Pollock Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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